After BRI, Bank Danamon Plans Dividend Distribution April 15th

JAKARTA - PT Bank Danamon Indonesia Tbk. plans to hold an Annual General Meeting of Shareholders (GMS) on April 15. Based on the disclosure of information submitted to the Indonesia Stock Exchange (IDX), the bank with the ticker for issuer BDMN has scheduled five meeting agenda items.

One of the main concerns is related to the dividend distribution decision for the 2020 business period.

"Determination of the use of company profits for the financial year ending on December 31, 2020", said the announcement on behalf of the BDMN board of directors, Thursday, March 24.

In the written statement it was also explained that 2020 net income is also set aside for reserve funds, and the remaining net profit which is not determined for its use will be recorded as retained earnings. This policy is by Article 20 paragraph 2 letter (b) and Article 25 of the Company's Articles of Association in conjunction with Article 70 and Article 71.

Besides, four other meeting agenda items that will be discussed are the approval of the 2020 annual financial report, the appointment of a public accountant for the 2021 financial year, determination of the number of earnings of company directors and commissioners, and approval of the 2020-2021 Recovery Plan Document Update.

Based on information compiled by VOI, Bank Danamon has consistently distributed dividends to shareholders in the last three years with a portion of 35 percent of the net profit that has been collected.

Meanwhile, BDMN's net profit in the 2020 financial year was recorded at around IDR 1 trillion. This achievement is lower than 2019 which amounted to IDR 4 trillion.

Meanwhile, from the shareholder side, Bank Danamon is controlled by Mitsubishi UFJ Financial Group Ltd. or MUFG Bank with a share of 92.47 percent. The remaining shares are owned by the public by 7.53 percent.

Most recently, today one of the national banks, namely PT Bank Rakyat Indonesia Tbk. (BRI), has just finished holding an Annual GMS with a decision to distribute dividends of IDR 12.1 trillion or the equivalent of 65 percent of the total net profit the company will receive in 2020, which amounted to IDR 18,65 trillion.

Meanwhile, 35 percent of the remaining net profit, or around IDR 6.5 trillion will be allocated for the retained balance to strengthen BRI's financial performance structure this year.